tv Your World With Neil Cavuto FOX News January 9, 2013 4:00pm-5:00pm EST
of crane construction site in long island still new york. we'll catch up on the fox report at 7:00 eastern, the dow is up about 62 at this moment. neil cavuto has perspective now and i'll see you later. [ bell ringing ] >> neil: as if i don't have enough to do, fresh from the cliff and your super hero is about to save america. while washington says on we are tapped out, don't buy it because your friendly neighborhood super hero and today i have the numbers to prove it. i'm neil cavuto and there is no denying when it comes to number crunching democrats and republicans often point to the numbers put out by these guys. >> about 24 hours after i spoke the congressional budget office released a report?
>> according to the congressional budget office. >> take it from me, that is what the congressional budget office told us. >> neil: so, if that be the case why are members ignoring these numbers from the congressional budget office? they are right out there, put out by the cbo putting out for everyone to read. like reduce funding for non-defense agency by 1% annually and you save 932 million. you slash the growth in funding for the department of defense by 1% and you save another $862 billion. we're not cutting or slashing anything. we're curbing go the growth. how about this. raise the earliest eligibility a age for social security, and you could be looking at another $144 billion in saving. nearly two trillion in savings from those three examples i gave
you. there are dozens more. a total of $4.6 trillion of potential savings if washington would get on the stick and start cutting, not hacking, cutting. not reducing but slowing the growth. is it any wonder that cockroaches have higher approval rating than members of congress. it is really bugging craig smith. when you look at this, these are old ideas put out by congressional budget office. the title sheet runs a few pages and the actual idea and budget statement runs more like traditional thousand pages. my point is, with very little tinkering and very little blood, sweat and tears, you say trillion, why can't we do that? >> we can do that. look, your crack production team at fox news, they are best in the industry. they sent me the cbo's report.
i just spent four hours going through it. here is the report right here. if mr. barack obama and mr. boehner want to cut spending and they don't want to use an ax and use a scapel they want to have bipartisan, the cbo has laid it out line by line. you cited some of the instances. i came up with another $96 billion just doing very minor simple little things. it would be like you saying to me, i spent hundred dollars a week on gasoline and my budget is out of balance. okay, you are only allowed to spend $99 on gasoline and within ten years we'll be okay. that is how small they are. you watch this thing get demagogued to debt. you are going to raise social security and do it on the backs of old people.
>> neil: ten years out and youngest age, no one would be close to retirement age now. leaving aside that, this is incremental efforts to save money and i think a lot of people when they hear the tax thing demagogued, when you three to slow the growth of entitlements you are throwing granny off the cliff, but the fact of the matter is if we don't slow the growth, 1% we won't have those entitlements. granny is going to get burned and granny's children and grandchildren will get burned. the cbo has laid it out. why is this one collecting dust, because this is gold? >> you bet. it's produced by the gold standard in the industry.
1974 congress passed an act, 1975 the cbo went into play. it was headed up by alice ribling. she would look at the report and say this is what we should do. let's get on track with this. you are right. this is probably why congress is so, less popular than a cockroach because it's simple to do neil. we need leadership to say the time has come. we can either do it now while it's voluntary or we can do it when it is mandatory. and forced is miserable. >> neil: i don't want this to seem -- a lot of folks saying -- you raise revenues doing this. by restricting the growth of programs that are running away, not a single program in here, i want to stress this -- nothing is being removed in this.
congressional budget office, the bible whether you like it the left or right, convenient given the political climate. if you accept this as gospel, nothing is removed under this plan. >> that is right. >> neil: nothing is hacked to smithereens, we are talking about such light things over the course of ten years you effectively shrink the size of government without killing government. if you love government, you still got it. it's not growing as fast but still getting bigger. this is not the end of the world. i suspect you and your friends on wall street is going to if this is ignored much longer you are just going to scream? >> let me tell you, the fine people over at fox business, i would love to get their opinion, if they heard tomorrow an announcement that congress came
together. they adopted all this, they are going to implement $2.4 trillion worth of cuts, not going to remove any programs. >> neil: we would be up a thousand points. >> at least thousand points. biggest growth this country has ever seen. >> neil: it's so easy. >> it really is. that is why congress can't do it. they mess up a one piece puzzle. anything you want done wrong, send it to congress. >> neil: always a pleasure. i thought i would bring it to your attention, i know it's impossible, it's hard, you can't do it. it's not. it's not. it's money coming in, money going out. a lot more money coming out. we have a little more money coming with the tax hikes so you get the best of both worlds. meanwhile, another number that
remains high and why we have to pay attention to this is deficit itself. this is not going to shock you but expected to top three for fifth straight year. a lot of things are in the green because they are doing something about it. out of 18 states with budget surpluses, my next guests find it order 14 republican governors or many are cutting spending and not hiking taxes and they are simply slowing the growth. everybody should take note but they are not. mary, what is going on. >> they are not. it's nice to look at the states and see, hey, these things are possible. you can get more money coming in than you are spending. that is sort of a basic principle of budgeting that many people follow in their own households, but the federal government can't seem to wrap
their head around it. indiana with hundreds of millions of dollars in surplus, $2 billion in a rainy day fund. when times were bad and the mitch daniels was the governor he is passing on to mike pence and he says we need to put money in a rainy day fund which leads something that liberals should be in favor of, so you don't need to make draconian cuts. and you can give sometimes the people that contributed to your government a refund at the end of the day. you see that in places like texas. they will have fights what to did with surpluses which is nice fight to be having. >> neil: it's actually going on in texas. i guess now we have to look at how washington proceeds from here and learns from what governors or doing. a lot of governors have no
choice. they have to have a balanced budget every year. i try to remind you, mary, this is so much easier than it appears, it's not rocket science? >> and not only maybe not rocket science but ends up being good. in texas, 6% unemployment and that is attributed to the energy boom. they allowed it to happen. on the federal level we are not allowing it to take place. in iowa they have a surplus and the fours they have an unemployment rate. so you can make people's lives better. it makes sense to people in a common sense level but in the federal area not so much. >> neil: i get a lot of e-mail. we had ron johnson on and got heated on and where is your backbone in spending cuts.
you have folks saying, you have to realize elections have consequences. the president won. this to say beyond justifying tax hikes, it justified no spending cuts. i don't think that is the americanss saw it. they won't see the math here that hurts democrats and republicans alike if something isn't done? >> here is the question i think the president knows well that this is the question. is california the model we're going to follow? they are $165 billion to $335 billion in debt. they say they might have a surplus because they raised taxes, but in fact, $5.2 billion of that $6 billion a year is going to debt service alone. they are sort of swimming in debt. the other states are adding jobs and doing pretty well and i would add, many people argue against texas they are not spending enough on services. when it comes to education, they
are in some cases, spending less money and across hispanic, white and black pop liaghz they are out performing california and out performing the national average. >> neil: bottom line. >> they are getting better results. >> neil: thank you very much. >> something tells me the folks over at boeing are not getting much sleep because that dream liner, it's a nightmare. r inves? tdd#: 1-800-345-2550 schwab bank was built with all e value and convenience tdd#: 1-800-345-2550 investors want. tdd#: 1-800-345-2550 like no atm fees, worldwide. tdd#: 1-800-345-2550 and no nuisance fees. tdd#: 1-800-345-2550 plus deposit ches with mobile deposit. tdd#: 1-800-345-2550 and manage your cash and investments tdd#: 1-800-345-2550 with schwab's mobile app. tdd#: 1-800-345-2550 no wonder schwab bank has grown to over 70 billion in assets. tdd#: 1-800-345-2550 so if you're looking for a bank that's in your corner, tdd#: 1-800-345-2550 not just on the corner... tdd#: 1-800-345-2550 call, click or visit to start banking with schwab bank today. tdd#: 1-800-345-2550
>>. >> neil: first it was fire, then there was fuel leak, then a report of bad wiring. now, a brake problem grounding another boeing dream liner this time in japan. so it does raise a bit of a safety concern. what is going on? industry expert says part of the problem could be outsourcing. we did call boeing for a statement on all of this. we have yet to hear back but
they are pretty good at getting back. george, what is going on here? >> it's unusual to have so many problems considering there are so few jets in the air of this type. so far there are only 30 or 40 flying. i think that the outsourcing problem has been more financially damaging for boeing. it cost them billions of dollars. it's been a problem for airbus. airbus had problems with the a-380. >> neil: the incidents in the public have been the result of outsourcing, wiring or fuel lines? >> we don't know that. the battery that exploded in boston, that was made by a japanese company. i don't know where it was made. boeing doesn't make batteries so they have to outsource. the other things they outsourced is some of the wiring and some of the wings. that really cost them a lot of
money in delays and cost overage >> neil: in a quest to save money? >> i think it was stupid. we outsource some i.t. and there was communication problems because english wasn't the first language we outsourced to. >> neil: so the issue behind each and every one of these issues, it raises a basic idiotic question -- would you be anxious about flying a dream liner knowing what you do in the accounts that keep coming to light? >> air traffic is safer than ever been in the history of commercial aviation. >> neil: i'm always worried when people say that. >> if the battery exploded in boston while passengers on the plane, there would have been panic. they would have deployed emergency slides. people would have gone down the slides. >> neil: to say nothing of a fuel leak in midair. is this out of norm for new
planes introduced? >> it's worse than a-380. they had engine problems. airbus didn't make the engines but they didn't have so many problems. >> neil: we didn't have nearly orders as we do now, 900 planes have been ordered? >> exactly. i know for the a-380 the holes that carried the wires throughout the plane were the wrong size. a source they were measured in inches and not centimeters and they had to replace these holes because they were made of plastic. so outsourcing does cost these companies money. part of the problem we don't have enough engineers in the united states to do some of the work that needs to to be done. we should open the floodgates and get more engineers into the
united states. >> neil: in the meantime, he was top architect of the war in afghanistan. now there is a talk at the white house may soon pull all troops out of afghanistan. what do you think retired general stanley mcchrystal thinks of that. we'll ask him and he is negligence. using cloud computing and mobile technology, verizon innovators have developed a projective display for firefighters. allowing them to see through anything. because the world's biggest challenges deserve even bigger solutions. powerful answers. verizon. ♪
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>>. >> neil: we know the obama administration wants to put most troops out of afghanistan after 2014, every single one? they are mulling called the zero option despite the top commander on the ground being no fan of that option it's the story of rising tensions in this region. retired four-star general stanley mcchrystal what he terms as a deficit of trust between
leaders in new book my share of the task. >> general, good to have you. what do you think of the zero option thing, is it just a ploy? >> i haven't been on the ground in afghanistan for a while. one of promises i made, don't second guess command others the ground on specifics. what i will say is a lot of americans have almost forgotten why we went to afghanistan. we went to 9/11 because al-qaeda was there and it was in our interests. we up ended taliban government and we incurred some responsibility to help afghanistan set itself on the right course. we have largely done that. it's not perfect but women have rights that they didn't have
before. there are six million females in school that wouldn't be if we had left it the way it was. >> neil: but not leaving a single troop there? >> i think president obama offered a strategic partnership to afghanistan back in 2009 when he authorized the troops. i think they need to know we are partners whether it's a certain number or amount of money or whatever, i think it's the idea that we are their ally and partner. we'll thereby to help them navigate. >> neil: you first arrived in 2002. you are a great student of history. that is what is really masterful in this book. so we have done our duty and we have done all we can do and time to go? >> it's partly our duty and partly our american strategic interests. when we arrived in 2002,
afghanistan had already been torn by 23 years of war. the society was turned upside-down. i don't think we understood it. until we understood it we couldn't appreciate it the complexity and damage and things that were going on inside afghanistan. i think we were way too superficial in the way we dealt with the problem. over time we appreciate it better but now, it's now 34 years that they have essentially had war in their territory. they are trying to get moving in the right direction but it's very difficult. in i think it is in our interests to have stability in the region, to have a sense in that critical region of the world that things can go in the right direction and not revert back to what ungoverned territory places e places where other groups can go.
>> neil: we had ron paul here saying, good money after bad, disaster, ten years, disaster. what do you say? >> i would take a different view. i went to kabul university one day. i had give and take of the students. they are the future of afghanistan college students, one of the students, a female was giving the hard time. which was great. another student got up and reminded her, if i wasn't there she wouldn't be in school. that is thing we need to remember. it hasn't been wasted money and sacrificed american lives, it's been very hard. i think as we look the way ahead we can't keep a lot of combat troops there, afghans don't want them. what they do wanted is a shoulder near them, the idea you've got an ally and combat. >> neil: a lot of americans don't trust this region. they don't trust neighboring pakistan. they don't trust hamid karzai
coming here. you remarked in the book you think he was elected but to a lot of the folks, they just don't trust him. >> it's very difficult. president karzai is the elected landlord of the country. we can't view our partner nations that we can call the shots. that is not what we want with the partner. we want a sovereign nation that can be strong. think we need to look at it that way. that the effort that our current policy is trying to implement. >> neil: do you think this president even wants to be in this region? he was critical about the bellicose nature of the bush years and he wanted to reverse that. he was stuck with it coming in and he couldn't get request quicker leaving? >> i think all americans, when they look at the region now, it's where the thrift 9/11
emanated from. we've had a difficult decade. >> neil: what would you have done after 9/11? >> it's interesting, i thought a lot about this. i would have acted a little differently but only with hindsight. first thing i would have done is 10,000 young americans to language school. i would have started a wider effort to study the history and culture and understand it. the entire region is so complex that every time you pull one lever it doesn't respond the way you expect, something else happens. we could have understand it better before we acted. you have to act, as well. i'm not saying do nothing. what i'm saying this is one of the places where it takes tremendous thought, tremendous care in acting. >> neil: obviously everybody wants to know about the famous rolling stone incident. what necessity charged in the magazine that led to your resignation was that your
colleagues were critical of the administration and making fun of it. the irony was that a report on this later exonerated you, said these conclusions came out a year from the controversy. the article created but they were important and maybe more important would accept first lady michelle obama to serve my country again this time on the board of advisors and white house initiative -- that was then. everybody remembers that article. >> whether or not i gree agreed with the tone and fairness of the article, the simple elegance of command means to me i am responsible. a controversy brews that threatens the mission and i am responsible for it and i'm responsible for doing whatever is best for the nation. >> neil: did your men and women, were they critical of the
president? >> it almost wouldn't matter because i accept responsibility for that controversy. i have moved on. >> neil: you voted for him in 2008. >> did you vote for 2012? >> i don't talk about it. i'm a private citizen. >> neil: do you think she good president? >> i think the job of president is a hard job. >> neil: in this region in the war on terror? >> one of the things i don't do is rate presidents. >> neil: who did you have a better relationship? >> i had a good relationship with both. i believe i still have a good relationship with president obama. i have seen him since in the oval office. >> neil: that came after that. you came into that meeting with your resignation element. he could have accepted it or rejected it. were you surprised he accepted it? >> no. i had gone into the meeting
expecting that he would accept it. we had a professional conversation but think what happens in the oval office i certainly would respect that privacy. he decided to accept my resignation. i told him i was happy to do either go back or whatever is best for the mission. i think that is more. >> neil: stick around we have to pay some bills and talk about changes in the makeup the foreign policy team and what happens there. you know the american ambassador killed and lone suspect in that attack freed. how is administration handling benghazi and could it spill over into a general middle east quagmire. more after this. mmmm tasty. and cut! very good. people are always asking me how we make these geico adverts. so we're taking you behind the scenes.
>>. >> neil: major blow to the benghazi investigation. only known person involved was in custody but he was let go because they don't have real evidence. we'll go to stanley mchrystal how the white house is handling all of this? >> first, if you look at death of chris stevens and other individuals, it's a tragedy. i wanted to be careful we as a nation don't draw the wrong conclusions. ambassador stevens was doing what he knew how to do he decided to be there. there was risk involved, but i
admire his service. he was a brave guy. he made the decision to be there. i think we're going to have accept risk around the world. i don't think you can always be in places that are completely secure and still get the job done. >> neil: you don't think this was at least falsely presented? >> i really can't judge that. i think the most important thing is not lose sight that we need to be engaged in the world and we need people like him out engaging even when it is dangerous. >> neil: there is perception that we left our people to die. >> the reporting i've seen doesn't lead me to draw that conclusion. >> neil: it was accidental and tragic? >> i think it may have been accidental but i don't think we left people to die. >> neil: do you think we failed to heed warning? >> i think there was a lot of intelligence.
i go back, sometimes people have to go in harm's way to do the nation's bidding. so i view chris stevens as a hero. >> neil: senator lindsay graham has said i don't get answers on benghazi and no confirmation for john brennan. is that fair, is that right? >> i think that is a call the white house has got to make. i don't have all the details. i know john brennan respected him for years. >> is he up for that job, c.i.a. director? >> i've had a great relationship with him. i think the senate has to make that decision. i think the president has to decide whether it is enough and senate to confirm to responsible to make it comfortable. >> neil: we had john kerry coming, two decorated veterans who have an add version to our
foreign policy on war maybe for very good reason. how do you feel about that? could this complicated our mission abroad in places like afghanistan and else where? >> my sense is senator kerry and senator hagel are very experienced people. the fact they have military service is helpful. it will be hard exactly what they do. the next four years at least are going to be uncharted territory. i think we'll be in a very dangerous world but certainly >> does it worry iran likes the hagel choice and senator hagel saying opposing sanctions? >> i don't put a lot of stake in iran likes. >> neil: think anybody iran likes i should be worried about. >> i don't give it that much
credibility. >> neil: the whole petraeus situation, were you surprised? >> i was surprised. i served along side dave petraeus to include many years in combat. he was a great servant to the nation. >> neil: did you have any idea any of this stuff was combing? >> no, i think the most important thing, he and his wife they get a chance to focus on themselves. that is what i think is most important. >> neil: there was no talk of this or fear he was compromising either military secrets or anything in this affair? >> i think this is now belongs to general petraeus and his wife. i think opining one way or the other isn't helpful. >> neil: how about the role of political leaders being your boss. when a new president comes in whether he is a veteran or not, john kennedy was a decorated war veteran. he came in and bay of pigs and
barack obama comes in, which is better? >> i would like to study history. the one that jumps out at me is abraham lincoln. he was a captain in the blackhawk war. he is says, all i fought was mosquitoes. when he took over the presidency he was command any chief in the biggest war in our nation to date. 600,000 american casualties. he had to learn to be a commander in chief in the job. he had to learn to deal with military leaders, how to think about strategy. the military leaders that he worked with, they had to learn, as well. none of them, had been in the mexican war -- but none of them had the background to deal at the national level. it took a while. if you read history it took president lincoln, he went through some generals but he changed the way he led. it took two and a half years -- i think every president goes
through that. john f. kennedy evolved. he was once urged never listen to a general briefed in uniform because you will be mesmerized by the uniform. necessity got come to feeling comfortable. at the end of the day, commander in chief and military leaders they have to be a team. it's not an opposition. i think that is extraordinarily important. >> neil: focus on numbers and deficits and debt, maybe the biggest threat to this country right now is whether we have the money to pay for them or money period. i have talked to some of the retired counterparts who say, that is the problem, financial security is at risk. what do you think? >> i agree. in the near to midterm, the financial security and stability of the nation is the essential
foundation from which we go. if we can't get that right, other nations, they know our weakness if we don't fix that. in the long term i'm worried about education. if we don't educate the coming future of americans, we're not going to have the work force, the kind of leaders and military that we need. >> neil: do you think we should be the world's kingpin, it does seem to a push and maybe we'll see it secretary of state kerry, a shared role but it shouldn't be u.s., u.s.? >> i don't think we think we should be the kingpin. whether or not you like it, we are the one nation in the world that can do things that none else can. there are certain things, even groups of nations can't do unless the united states participates in some way. i think most wars in the future
will be coalition based, but we've got to understand we're not just another equal nation. we bring power, credibility, experience and technology that makes us unique. we can't hide in the crack, we have to lead. >> neil: general stanley mcchrystal. it's a great read. will you learn a lot, an awful lot. you think about this whole afghanistan thing, and realize as i did, we inherited a mess going in there. we didn't appreciate it. maybe you were right. we needed to know basic stuff going in. we'll have more. work. and his new boss told him twongs -- cook what you love, and save your money. joe doesn't know it yet, but he'll wk his way up from busser to waiter to chef before opening a restaurant specializing in fish and me from the great northwest. he'll start investing early, he'll find some good people to help guide him,
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deal they cut was crummy. higher taxes, trick on investors. wall street is continue to slow. it's reported two weeks ago. citigroup was first to announce big cuts and we reported at the time that morgan stanley was considering it. fox news business network beat all the competition including our friends across the river whose name begins with a "c" by about an hour. >> neil: i so admire that. [ laughter ] >> what is interesting you went downhill within minutes? >> i did. >> you went from a war hero to a pawn. [ laughter ] >> neil: let me get your sense of whether this could be a sign of things to come. >> i think wall street is in sort of contraction mode. i think it's secular i think there is a shift going on.
>> neil: even with the great markets so far this year. >> this is great market that is largely confined to professional day traders and robotic computers. average investor morgan stanley would make money from, the average investor is out of this market. >> neil: i'm surprised for five or six trading days they were up and say what you will who is participating, that all these scare about these higher investment rates and taxes? >> that may come at some point but the market is reacting for the last i would say four years on basically on one standard, the federal reserve printing money. as long as the federal reserve prints money and keeps short term rates at zero, printing money going out doing their qe-2 3 and hshg, when they buy bonds
it pushes down rates on the long end and short end. you want to buy a bond, ten-year bond yields almost nothing. so it forces investors into stocks. but while professional investors are going into stocks the average investor is still scared >> neil: thank you general wall street. [ laughter ] >> neil: thank you charlie. and is lance about to go full cycle? [ male announcer ] you like who you are... and you learned something along the way. this is the age of knowing what you're made of. so, why let erectile dysfunction get in your way?
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striking out in the hall of fame. these can't make the hall of fame. will this guy make it out of p.r. hell. lance armstrong is scrambling after being banned for doping with news he is going to sit down with oprah winfrey next week. he is going admit it and try to assure the public he wasn't being ingenuous. we have people weigh on this, gregg shapiro. can he dial this back. >> no, you can't dial back. how are you doing? lance armstrong, he has spent years and years how dare you, how dare you time and again and then get red blooded after trying to embarrass the anti-doping agency and everybody else and decide it's time to come to jesus moment.
lance armstrong is in as deep as any athlete as ever been. >> neil: it's not something as saying, no i didn't use performance enhancing drugs. he denied it. >> he denied it for 20 years and he is worst than bonds, mcgwire, tiger woods. >> neil: i actually believed him. the others ballooned up but in his case, i just believed it. >> which is part of the problem. if i were counseling, first of all with oprah, he has to confess totally, not a mark mcguire half pregnant confession. i got forced into it. he has to say what he did, who he did it with, when he did it, why he lied for 20 years. number two, he has got to say i wanted to now devote the rest of
my life to try to fix this problem which is pervasive in racing, the doping problem to michael vick. >> neil: i don't know. would that work is. i think that is what high hats to do but is it too late? >> lance armstrong, bullied his teammates. this is most blatant transgression in the history of sports scandals. he muscled his way to try to win his own tour de france but he throws them all under the bus. he was a level of arrogance unparalleled by other figure. and then he denies it again and again and now he is going have a sweet moment. >> neil: why is he doing it? there is a lot of money. >> he wants to compete in triathalons and get his public
image. >> neil: is that what it is all about? >> he is 41 years old which is old particularly in this sport. you are almost 41, you know how old that is. >> neil: no, i'm not. >> if he wins, somebody comes back. >> neil: i'm assuming i'm not. >> i mean. >> what is he going twinning the local road race? >> neil: so you are saying he is toast. he highs as well give up now. >> the millions of dollars of sponsorship are done. the tour de france has failed. his public image and screwing around a bunch and been in trouble for a while. what is the win, the with win is maybe he is less vehemently hated than previously.
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